When it comes to real estate investment, you have to be prepared. It is not like investing in stock; real estate needs you to be knowledgeable about the industry. If you want to be successful in the real estate industry, then you have to go all out.
You should know about the prices in the market. There are certain things that you need to know when you decide to invest in real estate. Here are just some of the things that you should keep at the back of your mind.
You are going to need a lot of capital to get started. Make sure that you have a cushion to help you get the property to the point of occupation. You can plan to have a minimum down payment of 20% of the purchase price.
You should also be prepared for future repairs. If you are a tenant, you need to have cash that will help you in case the house needs to be repaired.
If you are not a resident, you will be required to pay tax on your source of income including the one you get from disposing of the land. Transfer of commercial property in Toronto is also subject to taxes. Thus, you need to know about taxation on real estate in Toronto. It will help you stay away from trouble.
Know the laws
It is vital to know the laws of Toronto before you decide to go into real estate industry. Every state has its laws that govern landlord and tenant relationship. There are landlord and tenant laws that you should know about in Toronto real estate. In as much as you are a landlord, you are constrained by both local and state. It is always better to be on the safe side of the law.
Know the market
If you want to make money in real estate industry, you need to have good knowledge of the market. The first thing that you should know is the property values. You should not only have the price estimates, but you have to know the close sale prices. It is also advisable to know the market rents.
If you are renting the property, you should have an idea of the rental property in the area. You can ask an appraiser to better know about the market rent. Doing research will help you determine the current market price of the property.